Jetstar delays Airbus orders until 2022

Jetstar Group has finalised the restructure of its large order book for Airbus A320 aircraft, pushing back some of the delivery dates to as late as 2022 as parent Qantas Airways looks to cut down on capital spending.

Airbus on Saturday announced that a new order from Qantas for 21 A320neo, or new engine option, aircraft was placed in June.

But a Qantas spokesman said that was due to the airline shifting back the delivery dates for Jetstar A320s already on order until after 2016 when the newer, more fuel efficient model will be available, as part of an order book restructuring first announced in February.

Qantas in February said it would defer some orders for aircraft, including A320s and A380s, alongside the announcement of plans to cut 5000 jobs and $2 billion of costs over the next three years.

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Airbus rolled out the first A320neo in Toulouse last week. Test flights are expected to begin in September, with the first delivery to a customer forecast in the fourth quarter of 2015.

The A320neo will be around 15 per cent more fuel efficient than the prior model at a time when fuel prices are high and airlines are looking to cut down on operating costs.

The 2011 Jetstar Airbus order included 78 A320neos – some with options to be converted to larger A321neos – to be delivered between 2016 and 2019. The A320neo order has now been increased to 99 aircraft to be delivered between 2016 and 2022.

Jetstar no longer has firm orders for any A320s between now and 2016 but cancellations by other airlines means some would likely be available if the airline does decide it wants to grow during that period. Jetstar could also extend leases on aircraft already in its fleet.

“We have plenty of flexibility in our A320 order book and leases to support fleet needs within the group," a Qantas spokesman said.

Qantas has so far earmarked the aircraft for Jetstar, but it has not ruled out the possibility of using the A320neos as an eventual replacement for Boeing 737s in its mainline division.

Rival Air New Zealand last month ordered 10 A320neo and three A321neo aircraft to replace older aircraft used on trans-Tasman flights.